Mission Produce evolves toward vertical integration in all producing areas
Mission Produce evolves toward vertical integration in all producing areas
Like many California-based avocado packing and marketing companies, Mission Produce Inc. in Oxnard, CA, handles avocados not just from California but from other producing areas as well. Unlike some other companies, Mission Produce has made an effort to become vertically oriented in its import as well as its domestic operations.
“I think we have evolved into being more vertically oriented in all sourcing areas, trying to get as much ownership close to the ground as possible,” said Ross Wileman, vice president of sales and marketing, in an interview with The Produce News.
The company has packinghouses in California, Mexico and Chile and partnerships in Peru, according to Wileman.
Regardless of the source of the product, “we take a lot of pride in our customer service level and delivery on what we promise,” he said.
Ross WilemanFor the 2013 season, everything is pretty much “steady as she goes” at Mission, Wileman said. There are not many changes in the company’s programs, personnel or facilities for this year. But in the near future, there are plans to build la new packinghouse in Oxnard. “That hasn’t even started yet” but is on the docket for next season, he said.
As for the 2013 season, “we are kind of in a transition right now,” with less than two weeks remaining in July, Wileman said. “California is at its peak production, producing about 20 million pounds per week” for the industry as a whole.
In Mexico, “we are winding down on the old crop,” he said. “It is all but finished,” and the Flora Loca or off-bloom crop had started. “We are having issues right now with the production levels on the Flora Loca crop” but hope that within two or three weeks “maturity levels will reach a level that we can start producing some volume out of Mexico.”
Peruvian avocados were currently coming into the United States as well, Wileman said. “They’re at the peak of their season.”
Peru, now in its third season, and second full season, of exporting to the United States, “has been a benefit to the industry,” Wileman said. Avocado supplies “are very tight in the United States right now.”
Peru also ships avocados to Europe, but in the United States “we are in a market condition right now where I believe we are creating a consumption level that is not being matched by production. The market is very active.”
A short time back, as many as 40 million pounds of avocados a week “from various sources” were moving through the U.S. market, he said. That has now dropped down to about 33 million pounds a week creating the current demand-exceeds-supply situation.
“In Mexico, the Flora Loca season will go through August, then the traditional new crop Mexico [season] begins in September.” Mexico appears to have “a sizeable crop” for its 2013-14 season, he said.
Peru’s volume “continues to increase to the United States on an annual basis,” Wileman continued. “There are a lot of new plantings down there.” This year, Peruvian imports “will go through August” and maybe into early September. Around that same time, the first Chilean avocados of the season will begin arriving.
“This year, we may see more opportunity for Chilean fruit to come into the United States,” he said. Chile, which generally spits its avocado exports between Europe and the United States, has a larger crop this year.
“We will see more volume coming into the United States this year than we did last year, just because of the market conditions,” he said.
The California crop, which is bigger than last year, was expected to continue strong through August and September, with “probably lighter volume in October,” he said.
Avocado consumption has been increasing annually not just in the United States but globally, Wileman said. “That’s why this commodity is so strong.”
“We see tremendous growth in Japan, Asia and Europe.” Europe used to be mainly a green skin market, “and now it is transitioning” to being more Hass oriented, he said.